The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-07-24
FAIR PRICES FOR CDT.Os.
ADVICE TO THOSE WHO DEALIN
FUTURES.
"De Not Buy Future Contracts" and
"Put Your Cotton In Strong
Hands for Sale"

ton have very decided interest in
this subject, and the propositions
presented are to show, beyond ques-
ton, the only way they can use reas-
enable and combined efforts to insure
a good margin of profit over the cost
Of raising their great staple.
Do not buy future contracts. |
lay down this general law in the first
place, because of its strong bearing
upon prices, and the certainty Of its
tendency to lead to lower values.
1t is questionable whether future
dealing in any staple has been OF
benefit to producers, but as this arti-
ole is not written for the purpose OF
attacking any interest, we will not
discuss that point.
The South, when specializing in
cotton, has usually been a buyer, and
it will hardly be thought an exagger-
alton to say that i. yearly takes
twenty million (20,0OO,000) bales Of
contracts" in the two great specu-
lative centers Of New York and New
Orleans. Taking this estimate for a
basis and adding a yearly product,
we find the South carrying $1,000
600 bales Of cotton which it is CON-
PEELED to sell during the season.
The great depressions, so often CO.
curing, are not surprising when one
thinks Of these figures, and, when
the South places itself in such a
helpless predicament, it is no won
der that spectators and spinuers
dictate the prices at which cotton
shall be sold.
These two classes have, by this
poor policy OF the South, been forced
into q partnership, as it we're, and
their united efforts are used to de-
press values. Each class wants to
buy, but At figures that mean loss to
the South aud profit 10 the comb.
nation" aud while one cries bad
trade = overproduction and tight
money" the other responds with
European troubles-decllnes ia sill
YER" etc., until the public lose sight
OF the fact that these reports are
largely circulated for a purpose, and
scamper out Of their trades like tim.
id lambs, and sell their spots or con-
tracts post haste, while the aforesaid
partnership serenely rakes in the
golden harvest.
l think il quite admissible for the
South 10 sell cotton for future deliv-
cry, and il they must speculate let it
be- on the selling side. Their staple
is raised to be sold, and il matters
little whether they agree in July on
a price to be paid 10 January, or
wait until the new year 10 make the
terms Of sale. They could thus in-
sure q price for all or portion OF
their crop. But the most decided
ADVANTAGE gained would be the break
ing Of the combination Of spinner
and speculator, and ar-ayipg the
Spectator, the leading spirit, upon
the side OF the South in its battle for
fair prices.
Ii would not be necessary for the
South 20 oversell itself TO produce
this effect, nor indeed to sell for iu.
ture delivery all It's product, but
only 10 contract for such q proper.
ton As will make it to the interest OF
the manipulators TO msintaia or ad-
vance values. 10 the second place,
| would suggest q rnlo OF action
fully a. imperative as the first propo-
sitiou: Put your cotton in strong
hands for sale. The South has,
since 1884, been drifting into most
dangerous experimental the more
dangerous because OF its alluring
aud seductive methods. To place
cotton in the hands Of commission
merchant for sale will cost pro.
Queer, for commission, storage aud
insurance, say, lc. per pouod over
the cost OF freight, and spinners in
Europe as we'll as in America have
gradually instilled into the minds Of
the people the idea that the South
can save this 10. charge by selling
direct from the plantations or rail.
road stations to the mills, aud the
reasoning IL very plausible and would
be quite true, II some arbiter be.
tween seller and buyer could fix a
fair value upon which all transac.
tions should be based.
The absolute necessity for such an
srbtcr was the parent Of the com
mission business. aud, under the old
regime, cotton factors fixed the val.
ucs end "Mohamet had to come 20
the mountain" before a trade could
be agreed upon. 1.-THE factors ser.
vices are dispensed with, the hawks
will make their trades with the doves.
"A word 10 the wise, etc"
In this connection IL may not have
occurred TO some minis, that il Is
the spinner and not the South, who
rcaps the benefit of dispeuing with
the factors charles. Purchases from
the smaller markets, by spinners, are
uniformly alta price sharply below
the figures they have 10 Ray At the
great cotton centors, aud each pur-
chase il used a. lever 20 cheaper
values in the large marts. Each pull
Of the lever has It's effect, aud each
decline in the big offerings has its
depressing reflection in the country.
and slice after slice is cut away from
the initial value, until prices get 20
much below q fair figure that out
siders are attracted TO purchase as an
investment. Last September, when
the crop first began 10 move. spin.
ncrs we're anxious buyers at 81
cents for middlipg at the centers,
but as soon A. country buyers had
collected enough TO offer from the
various railroad stations. they made
such prices A. attracted the orders
from the mills. and The large mark.
cts soor found that 20 sell at all, they
must offer on q basis Of these country
prices. They had hardly established
a lower range Of values before spin
ners we're again able 10 buy still
cheaper throughout the South. aud
then dullncss with another decline
found still another cut" aud 10 on
until the bulk Of the crop found ia
way TO the mills at from one 10 two
cents per pound cheaper than il
could have been sold for, II IL had
/